The government has finally decided to enact a legislation, named Public-Private Partnership (PPP) Act 2013, to draw private investors to its public-private initiatives to accelerate development. And this after losing a substantial amount of money, time and projects during the last four years, sources in the PPP office said. The draft bill is likely to be placed at the meeting of the cabinet committee on economic affairs on May 26 for its approval. If the cabinet committee gives its approval, the bill will be placed before the cabinet and then tabled in the upcoming session of Parliament.
After coming to power in 2009, the Awami League-led government initiated a move to draw investors from home and abroad to implement some mega projects, like the Elevated Expressway worth Tk. 8,703 crore, under the PPP.
In 2010, the government signed an agreement with a Thai construction firm, the Italian-Thai Development Public Company, for the Elevated Expressway project, the first PPP project in the country, for easing traffic congestion in the capital. Construction work began. But the foreign company had to wind-up its business due to funds crunch and legal barriers owing to absence of any law in this regard, the sources informed this correspondent on condition of anonymity.
Talking to this correspondent over the telephone on Thursday, Md Humayun Kabir, deputy manager of the PPP office, said they are enacting the PPP Act for clearing legal bottlenecks so that investors can arrange for funds to implement mega projects.
“The government is enacting the PPP Act for strengthening the activities of the PPP office for implementing some mega projects under the PPP,” he added.
He said the cabinet committee on economic affairs has so far approved 17 projects, including Dhaka Bypass Project and Dhaka-Ashulia Elevated Project, under the PPP.
Five projects, including the elders’ hospitality project and construction of two jetties at Mongla Port, are under feasibility study of the PPP office, the official informed.
According to Clause 29 (ka) of the draft Public-Private Partnership (PPP) Bill: “The private investor will form a company after signing an agreement with the government and the company will have 100 per cent ownership. The company will not hand over its shares until three years of signing of the agreement.”
Section 49 of the draft Bill says: “The investor can cancel the partnership if the company is unable to complete the work under special circumstances.”
As per Section 50 of the draft Bill, the investor may claim compensation if the partnership is cancelled.
Section 54 says, a PPP office will be established under the Prime Minister’s Office.
-With The Independent input
